Crypto analyst Dennis Liu, who posts under the name VirtualBacon, says he is the most bullish on altcoins he has been in four years.
In a video shared on
Altcoins are still near their floor against Bitcoin
Liu’s first argument is that the current Bitcoin cycle remains early, which he considers a favorable time to trade altcoins. Its second is the altcoin/Bitcoin ratio, measured using TOTAL2 excluding stablecoins and divided by Bitcoin. Liu estimated that ratio at 0.48, close to a bottom around 0.40, and compared it to levels of around 0.45 to 0.46 during the bear market months of April to June.
He argues that altcoins have barely recovered against BTC despite Bitcoin’s rebound, making them cheaper by that measure. The third factor is entry timing: after a small breakout after Bitcoin’s bottom, altcoins retraced, giving traders a chance to enter after the first move rather than chasing it.
Liu’s main argument is macroeconomic. He highlighted the rapid expansion of the Fed’s balance sheet in 2020-2021, when altcoins outperformed Bitcoin, compared to the contraction from October 2023 to October 2025, where they underperformed. The toll, he noted, has been increasing again since November 2025.
“This condition alone, I believe, will be the deciding factor in giving us a stronger altcoin cycle in this cycle,” he explained.
However, he does not foresee a repeat of the 2020-2021 boom. Liu estimated that there is a 50% chance of altcoins moving sideways to Bitcoin, a 40% chance of them improving, and a 10% chance of further underperformance. According to him, even a uniform ratio could produce a better cycle than 2023-2025.
The median altcoin is ahead this year, but prices have fallen
Matthew Hyland, another market analyst, supported this view in an article on X: noting that the median altcoin is ahead of Bitcoin year-to-date in 2026, which has not happened since 2021. In a separate article, he forecast gains of 1,000% to 100,000% and claimed his data put the market where it was in early 2016 and mid-2020.
Prices did not follow this week. As CryptoPotato As reported earlier, Bitcoin was rejected at just under $85,000 and the total crypto market cap lost over $60 billion from the previous day’s high. BTC is now trading around $82,000 and its dominance over altcoins is over 58% per CoinGecko. The same tracker shows Ethereum at nearly $2,400, down 2% per week, while Monero stands out at around $613, an 8% gain over seven days.
The article Why This Analyst Is Bullish on Altcoins Again in 2026 appeared first on CryptoPotato.
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